SINGAPORE is not in talks with Malaysia to renegotiate the price of water, said the city-state’s deputy prime minister, Teo Chee Hean, today.

He was speaking to the media during a tour of the Changi Water Reclamation Plant.

Asked whether Malaysia had approached Singapore officially regarding the water issue, and whether Singapore was in talks with Malaysia, Teo replied “no”, without elaborating.

His comments came amid suggestions by Prime Minister Dr Mahathir Mohamad that Malaysia was selling water to Singapore at too low a price.

Dr Mahathir, on August 13, suggested that the price of water sold to Singapore should be raised by at least 10 times, doubling down on his comments in June that water was among the issues with Singapore “that we need to settle”.

After the June remarks, Foreign Minister Saifuddin Abdullah said there was still scope for a review of the water deal between the countries.

Singapore has stood firm that both countries have to adhere to the agreed terms relating to the water deal.

Commenting on the issue for the first time at the National Day rally, Singaporean Prime Minister Lee Hsien Loong said while the country appreciated the new Malaysian government’s reasons to review and change policies of the previous administration, the 1962 Water Agreement between the neighbours was “sacrosanct”.

“We must proceed strictly in accordance with its terms.”

Background

Under the 1962 Water Agreement, Singapore’s national water agency, PUB, may draw 250 million gallons of raw water from Sungai Johor daily at 3 sen per 1,000 gallons.

In return, Johor is entitled to receive a daily supply of up to five million gallons of treated water – or 2% of the water supplied to Singapore — at 50 sen per 1,000 gallons.

Singapore has said the cost of treatment is RM 2.40 per 1,000 gallons, while Malaysia sells the treated water to Johor citizens at RM3.95 for the same amount.

Recent timeline of comments

– In June, Dr Mahathir said the water deal was “too costly” and “manifestly ridiculous”.

– Singapore responded by saying the deal was “a fundamental agreement that was guaranteed by both governments in the 1965 Separation Agreement, which was registered with the United Nations”.

– Last month, Singaporean Foreign Minister Dr Vivian Balakrishnan told Parliament that the country would “fully honour” the terms of the 1962 deal and expected Malaysia to do so.

– Three weeks after Dr Balakrishnan spoke in Parliament, Saifuddin said there was still scope for a review of the water deal.

– In his National Day Rally speech on August 19, Lee said the agreement was “sacrosanct”. He also said Dr Mahathir’s comments on reviewing the price of water were “not new”, since the latter had raised it multiple times during his first stint as prime minister from 1981 to 2003. – TODAYonline, August 28, 2018.